Torrent Power (TORNTPOWER) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 reported PBT was INR 985 crores, down 25% year-over-year, impacted by non-recurring FX loss and absence of last year's favorable tariff order credit.

• Revenue from operations for Q1 FY26 was ₹7,906 crore, down 12% year-over-year, with total comprehensive income dropping 26% to ₹739 crore due to lower power demand and elevated gas prices.

• Adjusted PBT (excluding non-recurring items) was INR 1,044 crores, a 14% decline year-over-year, mainly due to lower merchant gains.

• Improved contributions from renewables and better operational parameters in distribution partially offset the impact of lower merchant gains.

• The business remains resilient, supported by a diversified portfolio and strong operational track record.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was ₹6,167.04 crore, down from ₹7,186.39 crore in Q1 FY25 (restated for the renewable business transfer).

• Consolidated net profit for Q1 FY26 was ₹741.58 crore, compared to ₹996.34 crore in Q1 FY25.

• EBITDA for Q1 FY26: ₹1,588 crore, down 18% year-over-year.

• Merchant sales for Q1 were 714 MUs, with a contribution of INR 327 crores (down from INR 660 crores last year).

• Interest expenses reduced by INR 547 crores due to debt repayment from QIP proceeds.

Outlook and guidance

• NVVN tender guarantees minimum offtake until October 15, with unutilized supply expected to spill into Q2 and possibly Q3.

• CapEx for FY26 is projected at INR 7,000-8,000 crores, with a higher figure expected for FY27.

• Renewable CapEx will ramp up in H2 FY26, with 500-700 MW capacity additions planned.

• Company targets significant renewable capacity expansion, with ~4.9 GW renewables in the pipeline and a long-term goal of ~8.4 GW including green hydrogen and pumped storage.